Mineral Mountain Announces Closing to Financing Transaction
March 07 2014 - 5:09PM
Marketwired
Mineral Mountain Announces Closing to Financing Transaction
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 7, 2014) -
Mineral Mountain Resources Ltd. ("Mineral Mountain")
(TSX-VENTURE:MMV)(OTCQX:MNRLF) Further to the Company's news
release of January 21, 2014, and February 27, 2014 the Company
announces that it has closed its securities exchange with Global
Resources Investment Trust plc ("GRIT").
The Company issued 28,600,000 common shares at a deemed price of
$0.07 per share to GRIT, (which results in GRIT holding
approximately 19.94% of Mineral Mountain's common shares) in
exchange for 1,121,128 ordinary shares of GRIT (the "GRIT Shares"),
at the deemed price of £1.00 per GRIT Share. The securities issued
to GRIT are subject to resale restrictions expiring July 8,
2014.
The Company will now seek to sell the GRIT Shares through the
facilities of the London Stock Exchange. During the first six
months, all sales of GRIT Shares will be arranged by GRIT. While
the Company will seek to maximize the proceeds it receives from the
sale of its GRIT Shares, there is no assurance as to the timing of
disposition or the amount that will be realized. Funds realized
from the sale of the GRIT Shares will be used by the Company for
exploration work.
The GRIT Shares were distributed pursuant to a prospectus
published by GRIT in the UK on February 28, 2014. GRIT's
application to list its ordinary shares on the premium listing
segment of the Official List and to trade on the London Stock
Exchange's main market became effective today. GRIT's distribution
of the GRIT Shares to the Company and other Canadian based issuers
was also made pursuant to a discretionary exemption order granted
by the Ontario and British Columbia Securities Commissions by order
dated November 13, 2013.
GRIT has been established to exploit investment opportunities in
the junior mining and natural resources sectors worldwide, with an
investment objective to generate medium and long-term capital
growth. GRIT has conducted share exchange transactions with 41
junior resource companies (32 headquartered in Canada), acquiring
an initial portfolio of their securities in exchange for 39,520,012
ordinary shares having a deemed value of £39,520,012 (approximately
C$73,250,000).
In connection with the transaction, Mineral Mountain has agreed
to pay to certain arm's length individuals a finder's fee
consisting of Mineral Mountain shares in accordance with the
policies of the TSXV. The finder's fee payable by the Company will
only be paid in conjunction with the actual sale by the Company of
the GRIT shares, and will be based on the actual cash value
received from the sale of such GRIT shares.
About Mineral Mountain and the Holy Terror Project
Mineral Mountain, through its wholly owned subsidiary Mineral
Mountain Resources (SD) Inc., is focused on the advance exploration
and, if warranted, development of its most advanced asset, the Holy
Terror Project located in the Keystone Mining district in the
southeastern part of the Black Hills of South Dakota, U.S.A. The
Holy Terror Project is centered along the southwestern extension of
the Homestake Gold Trend and covers approximately 5000 acres
straddling a major gold bearing structural corridor measuring about
15 km in strike length and 1.5 km in width. The Keystone District
contains historic, turn of the century gold mines, eight of which
occur within the Holy Terror Project. Production of these mines
came from early Proterozoic gold mineralization associated with
iron formation, and shear zones similar to the deposits at the
western hemisphere's deepest and richest mine, the Homestake gold
mine, which, over 120 consecutive years produced 40 million ounces
of gold in the northern Black Hills. The Holy Terror Project is
very well located near Rapid City where it can be easily accessed
by a network of roads and has hydro-electricity and modern internet
services to the drill site. As well, the area has a skilled labor
force and can be explored year round at low cost. According to a
recent poll released by CNBC, South Dakota was ranked first overall
in the United States for conducting business in 2013, has low
political risk and a jurisdiction that embraces mineral
development.
On Behalf of the Board of Directors, MINERAL MOUNTAIN RESOURCES
LTD.
Nelson W.
Baker, President and CEO
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This release includes certain statements that may be deemed
to be "forward-looking information" under Canadian securities laws.
All statements in this release, other than statements of historical
facts, that address events or developments that Mineral Mountain
expects to occur, constitute forward looking-information. Forward
looking information consists of statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "could" or "should" occur. Although Mineral
Mountain believes the expectations expressed in such
forward-looking information are based on reasonable assumptions,
such information does not constitute guarantees of future
performance and actual results may differ materially from those in
forward-looking information. Factors that cause the actual results
to differ materially from those in forward-looking information
include the ability of GRIT to complete its stock exchange listing,
the ability for Mineral Mountain to resell its shares of GRIT, gold
prices, results of exploration and development activities,
regulatory changes, defects in title, availability of materials and
equipment, timeliness of government approvals, continued
availability of capital and financing and general economic, market
or business conditions. Mineral Mountain cautions the foregoing
list of important factors is not exhaustive. Investors and others
who base themselves on Mineral Mountain's forward-looking
information should carefully consider the above factors as well as
the uncertainties they represent and the risk they entail. Mineral
Mountain believes that the expectations reflected in the
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct. Please see
the public filings of Mineral Mountain at www.sedar.com for further
information.
Mineral Mountain Resources Ltd.Brad BakerVice-President
Corporate Development & Director(778)
383-3975bbaker@mineralmtn.comwww.mineralmtn.com
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